Calculation of Old Age Pension

For people who are subject to social insurance from 1 January 1996 old age pension shall be determined taking into account the accumulated pension capital during the period from 1996 to the month of granting the pension and the retirement age.

Old age pension is calculated by using the following formula:

P = K/G : 12

P – monthly pension;

K – pension capital of the insured person registered in the person’s account and updated according to the provisions of the Cabinet Regulation No. 205 “Procedures for the Calculation of the Insurance Contribution Wage Index and Updating of the Old-Age Pension Capital” of 27 March 2007, taking into account the annual indices of insurance contribution wage.

Index of Insurance Contribution Wage

For persons who have accrued funded pension capital, it is added to the pension capital (K) at the request of the insured person.

G – period (in years), for which the payment of old age pensions is planned as of the year of granting the pension.

Planned Payment Periods of Old Age Pension (in Years) “G” in 2020
Planned Payment Periods of Old Age Pension (in Years) “G” in 2021

For persons with the insurance period until 1996, also the original pension capital is determined that is added to the calculated pension capital (K).

Original pension capital is calculated by using the following formula:

Ks = Vi x As x 0.2 x 12 

Ks– original capital;

As– the amount of full years of the insurance period until 1995 (included);

Vi – average insurance contribution wage of the insured person for 48 months (updated) for the period from 1996 to 1999 (included). If the insurance contributions have been made for less than 48 months during the said period, the average insurance contribution wage is established by dividing the amount of insurance contribution wage by 48.

Published date: [10.06.2020]